African Americans Are Making Slow Progress in Closing the Racial Gap in Investments

A new study from the FINRA Investor Education Foundation finds that African Americans continue to be underrepresented among investor households in America, despite modest gains in recent years. The generation of wealth can be a major factor in creating greater opportunities for accessing top-quality higher education.

Researchers examined investment account ownership across more than 80,000 households of differing racial and ethnic backgrounds over a six-year period. They found only about a quarter of African American adults owned a taxable investment account, and more than half owned no investments of any kind. However, the proportion of African Americans owning taxable investment accounts increased from 22 percent to 26 percent from 2012 to 2018. Some 35 percent of White Americans had taxable investment accounts.

“These findings confirm the presence of a stark, persistent racial and ethnic divide among U.S. investors,” said FINRA Foundation President Gerri Walsh. “We know that systemic racism — evident in disparities in income and wealth — poses significant barriers that can impede the financial inclusion of African American households.”

The full study, “Bridging the Divide: A Closer Look at Changes in the Racial and Ethnic Composition of Investor Households,” may be accessed here.

Related Articles

Leave a Reply

Get the JBHE Weekly Bulletin

Receive our weekly email newsletter delivered to your inbox

Latest News

Tuskegee University Flight School Receives $6.7 Million in Federal Funding

With a $6.7 million investment from the federal government, Tuskegee University will launch a new bachelor's degree in aviation science. The program will teach students about aviation science and technology and provide them with flight school training.

Three African Americans Appointed to University Faculty Positions

The faculty appointments are Dexter Blackman at Morgan State University in Baltimore, Stephanie Henderson at Alcorn State University in Mississippi, and Yolanda Pierce at Vanderbilt University in Nashville.

Virginia State University Approved to Launch Master’s Degree in Data Analytics

The master's degree in data analytics will prepare students to use data to make strategic technology and business decisions. The new degree program will be the 14th established master's degree at Virginia State University.

Samuel Frimpong Honored for Outstanding Contributions to Mineral Industry Education

Dr. Frimpong was honored by the Society of Mining, Metallurgy, and Exploration with the 2024 Mineral Industry Education Award. He currently serves as a professor of mineral engineering, the Robert H. Quenon Endowed Chair, and vice provost for graduate education at Missouri University of Science and Technology.

Featured Jobs